Invested in
Outset Medical?
Contact investor lawyers for a free evaluation of your potential claims for compensation today.
- Did you invest in Outset Medical, Inc. (NASDAQ: OM) between September 15, 2020, and June 13, 2022?
- Are you concerned about the allegations of misleading statements and/or omissions surrounding Outset’s Tablo Hemodialysis System flagship product and the alleged issues concerning its at-home use?
- Are you concerned about the performance of the OM stock price?
- Would you like your potential options for compensation and/or redress to be reviewed by an experienced team of investor lawyers?
Request a free case evaluation via email at arosca@rscounsel.law, leave a message through the contact form on this page, or call us at 888-998-0530.
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Posted August 18, 2022
Outset Medical Investigation
Securities attorneys Alan Rosca and Paul Scarlato have been investigating potential securities violations, misrepresentations, and/or corporate misconduct, as well as questionable business practices all involving Outset, and have identified potential areas of concern.
Current OM stock investors who invested between September 15, 2020, and June 13, 2022, and are interested to evaluate potential options to seek compensation and/or pursue claims related to their Outset Medical holdings may contact investor rights attorneys Alan Rosca and Paul Scarlato.
Attorneys Rosca and Scarlato have extensive experience in seeking compensation related to investor harm and pursuing claims arising out of corporate misconduct and are currently evaluating potential claims on behalf of investors in Outset Medical. They typically work on a contingent fee basis, do not require any money down from their clients, advance case expenses, and only get paid for their fees and expenses if and when successful, pursuant to court review and approval.
Claims that are not timely pursued may expire or otherwise be lost, generally speaking. Outset Medical investors interested to explore options to file claims should consider taking action promptly.
Concerned OM stock stock investors investors may contact attorneys Alan Rosca or Paul Scarlato to discuss their potential options toll free at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
About Outset Medical, Inc.
Outset Medical, Inc. is a Delaware medical technology company reportedly incorporated in 2003 under name of Home Dialysis Plus, Ltd, with offices in San Jose, California. Outset reportedly developed a “first-of-its-kind technology” to reduce the cost and complexity of dialysis called Tablo Hemodialysis System (Tablo).
According to its website and regulatory filings, Outset Medical is currently led by a management team that lists Leslie Trigg as Chair and Chief Executive Officer, and Nabeel Ahmed as Chief Financial Officer.
Outset Medical Securities Offerings and Price Evolution
Between February 2010 and February 2020, Outset Medical fka Home Dialysis Plus, Ltd. filed seven Regulation D notices of exempt securities offerings (RegD). According to the most recent RegD, signed by the company’s former CFO Rebecca Chambers, Outset Medical raised $114,999,995 from 20 investors.
Outset Medical filed a Draft Registration Statement announcing its intention to organize a public offering in July 2020. A Rule 424(b)(4) prospectus was filed on September 14, 2020 disclosing that the company was selling 8,951,111 shares of common stock at $27 per share, for a total offering price of $ 41,679,997. Outset Medical also announced that its commons stock has been approved for listing on Nasdaq under the symbol “OM”.
A second Rule 424(b)(4) prospectus was filed a few months later, on December 3, 2020, announcing that certain stockholders of Outset Medical are offering 4,000,000 OM shares for a sale price of $53 per share. This offering was followed by another one according to a third Rule 424(b)(4) prospectus dated April 12, 2021, pursuant to which the company and certain of its stockholders offered a combined total of 5,944,859 shares at $53 per share.
Data provided by Yahoo! Finance shows that the price per OM stock reached its peak value on November 30, 2020 when the price closed at $64.00 per share. Over the next year the price per OM share fluctuated between $59.92, the closing price on April 30, 2021, and $36.86, the closing price on August 10, 2021.
After it closed at $58.77 on November 3, 2021, the value of the OM stock started to decline until it closed at $34.22 on February 16, 2022. Over the next few weeks, the value of per OM shares started to recover, and on April 6, 2022, closed at $48.16.
Since then, the price of OM shares has been declining, and on June 14, 2022 it closed at $13.46. On August 2, 2022, the price per OM share closed at $18.82, which according to Google Finance is 57.47% down YTD, and 66.52% down since its listing.
Outset Medical Class Action Complaint
On July 8, 2022, an Outset Medical investor filed a class action complaint against Outset Medical, Inc., Leslie Trigg, Nabeel Ahmed, and Rebecca Chambers.
The class action complaint is alleging violations of securities law in connection to certain materially false and/or misleading statements, as well as alleged failure to disclose surrounding the use of Tablo Hemodialysis System in a home setting.
According to the complaint, unbeknownst to Outset investors, while Outset Medical was allegedly touting Tablo as being a “dialysis clinic on wheels” that was cleared by the Food and Drug Administration (FDA) for “use in the hospital, clinic or home setting,” the company allegedly continuously improved and updated Tablo, which resulted in a requirement to file an additional 510(k) application with the FDA. Furthermore, Outset Medical allegedly failed to conduct a real-world human factors study for Tablo use at home as allegedly required by the FDA protocol.
On May 4, 2022, Outset Medical filed an 8-K report announcing alleged disappointing first quarter 2022 financial results, which according to the complaint caused a 40% decline in OM price per share over the three trading days that followed.
On June 13, 2022, Outset Medical filed another 8-K Report, announcing shipment hold on Tablo systems for home use pending FDA clearance of a recent 510(k) submission that was reportedly filed due to “changes made since the device’s original March 2020 clearance.” The release also announced the suspension of the prior issued guidance.
Furthermore, during the call with analysts that followed the June 13 release, Leslie Trigg allegedly disclosed that Outset Medical used a simulated use environment at a human factors lab, instead of real-world data gathered in the home environment, the complaint alleges. The news reportedly caused an additional 34% decline of the price per OM share, which according to the complaint closed at $13.46 on June 14, 2022.
As a result, the plaintiffs sought damages, pre-judgment and post-judgment interest, as well as reasonable attorneys’ fees and costs, and expert fees. As of August 18, 2022 the class action was pending.
Potential Compensation Claims
Concerned About Your Outset Medical Investment?
Investor rights attorneys Alan Rosca and Paul Scarlato at Rosca Scarlato LLC are investigating options for concerned investors and are evaluating potential claims on behalf of OM shareholders. They have decades of combined experience representing victims of corporate or financial misconduct.
If you are an Outset Medical investor concerned about your investment, you may contact attorneys Alan Rosca or Paul Scarlato to learn more about your rights and for an evaluation of your case, or to provide useful information. All consultations are free. The Rosca Scarlato LLC attorneys typically take cases like this on a contingency fee basis, advance all case costs, and only get paid for their fees and expenses if and when they are successful, following review and approval by the Court of any fee application.
To reach attorney Alan Rosca or his colleagues, Outset Medical investors may call 888-998-0530, email arosca@rscounsel.law, or leave a message through the contact form on this webpage.
These general considerations are for informational purposes only and do not constitute legal advice. Such legal advice can only be offered once the attorneys discuss each investor’s situation, learn of the relevant facts, and can tailor any advice to that investor’s facts. Outset Medical investor center is not affiliated with Outset Medical, Inc.
Contact info:
Rosca Scarlato LLC – 216-946-7070 / 888-998-0530.
Alan Rosca – arosca@rscounsel.law
Paul Scarlato – pscarlato@rscounsel.law
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DISCLAIMER
In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow matters about which we report, and/or to publish subsequent updates regarding various developments that may occur in such matters. Readers are encouraged to conduct their own research regarding any such matters and any developments that may or may not have occurred in such matters. Also, the Brokercheck report linked to some of our blogs is the up-to-date version as of the date of accessing by the reader. The information in our blogs is current as of the date of the drafting of the blog, and given that sometimes certain past complaints may no longer be listed in newer Brokercheck reports, some of the events referenced in some of our blogs may later on be removed from newer Brokercheck reports. Visitors may check the most recent version of each brokercheck report at www.finra.org, and may contact FINRA for the earlier version of the Brokercheck report upon which various blogs may be based.